Sembcorp makes big bet on solar project in Cadiz

By Lenie Lectura – February 3, 2025
from Business Mirror

Singapore-based Sembcorp Industries (Sembcorp) is venturing into the Philippine renewable (RE) market where it will invest some $105 million.

Sembcorp’s wholly-owned subsidiary, Sembcorp Energy Philippines, has signed a share purchase agreement with CleanCurrent Renewable Energy Inc (CREI) for the acquisition of the latter’s 100-percent shares in Puente Al Sol Inc. for approximately $105 million.

Puente Al Sol is currently developing a 96 megawatt (MW) solar farm in Cadiz, Negros Occidental which is expected to commence commercial operation this year.

The parties will have to secure regulatory approvals for the deal to proceed. They expect to secure these approvals in the second half of the year. “The proposed acquisition marks Sembcorp’s entry into the Philippines’ renewable energy sector, underscoring its commitment to growing its renewables presence to drive energy transition in the region,” Sembcorp said in a statement.

It also said that the sales and purchase agreement is not expected to have a material impact on the earnings per share and net tangible assets per share of Sembcorp for the financial year ending December 31 2025.

Sembcorp said it has a balanced energy portfolio of 25.9 gigawatts (GW), including 16.5GW of gross renewable energy capacity, across 10 countries.

“Our urban development projects span over 14,000 hectares across Asia and have generated over 377,000 employment opportunities and attracted close to $50 billion of investment capital,” the company said.

In addition to being listed on the main board of the Singapore Exchange, Sembcorp is a constituent stock of FTSE Russell Index, MSCI Singapore Index, Straits Times Index as well as sustainability indices including FTSE4Good Index, iEdge SG ESG indices and several MSCI ESG indices.